It’s clear who rules the crypto world-Bitcoin’s big comeback
On Tuesday morning, the world’s most valuable cryptocurrency price soared above $50,000-the highest level in nearly four weeks! As a result, Bitcoin rose to 50,808.25 US dollars, by 2.6%.
There hasn’t been any specific catalyst to “blame” Bitcoin’s recent surge. However, investors still have been investing in cryptocurrencies for the past seven weeks like crazy.
Analysts believe that this decisive shift in sentiment is due to the growing investor confidence in the asset class. That factor boosted Bitcoin to rise by nearly 20% in the past week.
Other top cryptocurrencies, including Ethereum, Binance, Solana, and Elon Musk’s favorite Dogecoin, have also received similar huge gains.
For example, Ethereum rose by 1.5% and reached US$3,434, and XRP rose by 2.2% and reached US$1.0656.
Another expert pointed out that some of the recent macro concerns that have weighed on the stock market may also have boosted Bitcoin.
For example, concerns about inflation are driving the recovery of cryptocurrencies.
BTC hovered at a low of $30,000 for most of the Q3
The last time Bitcoin surpassed $50,000 was in early September, when the cryptocurrency became legal tender in El Salvador.
As investors bet on the trend in the fourth quarter, cryptocurrencies have started rising.
Due to concerns about China’s crackdown on cryptocurrencies and fears that the United States might follow stricter regulations, prices plummeted in late spring and summer.
But after Fed Chairman Jerome Powell recently stated that the central bank has no plans to take strict measures against Bitcoin as China did, those US-centric concerns have subsided.
As a result, Bitcoin and other digital currencies have made a fantastic comeback in the past few months.
How do institutional investors influence Bitcoin price?
According to experts, as Bitcoin and other cryptocurrencies become mainstream, large US institutional investors may increase their demand.
But they also believe that some top companies may be waiting for prices to fall further before they can place large purchase orders after the recent surge.
Despite the increasing adoption of Bitcoin by consumers and the recognition of cryptocurrencies by several top Wall Street companies and other financial giants, there are still some doubters, for example, JPMorgan Chase CEO Jamie Dimon.
All in all, Bitcoin is still the most valuable digital asset, with a total market cap of $969.90 billion.
Value drivers include supply and demand dynamics, scarcity, and potential ETF approval time.